On 20 April, the European Parliament approved the new Markets in Crypto Asset Regulation. The legal framework will enter into force for all entities dealing with crypto (exchanges, wallet providers, etc) at the end of 2024 after an 18-month period.
There is only one important exception - stablecoins, which must become compliant with the new law within 12 months. You can learn more from the EU Parliament press release.
The EU is the first region to adopt a comprehensive regulation of the crypto industry and most big players like Binance have welcomed this move.
Why is the regulation good?
Most importantly, there will be a higher level of investor protection and transparency. It also makes it easier for crypto companies to operate in a compliant way that is beneficial for society.
Whis it the regulation bad?
This regulation goes against the whole idea of Bitcoin/DeFi and reduces the utility of some tokens. After the implementation of this regulation, stablecoins will become much more similar to traditional currencies like the USD/EUR. People who use them will be subject to almost the same regulatory scrutiny as bank users (KYC, Anti-money laundering, etc.). Perhaps, the major remaining advantage will be the speed of execution of international transfers.
Moreover, crypto exchanges like Binance will become traditional centralized financial institutions similar to banks.
Are you enthusiastic about the new regulation or do you think that the members of the EU Parliament are useless idiots?
There is only one important exception - stablecoins, which must become compliant with the new law within 12 months. You can learn more from the EU Parliament press release.
The EU is the first region to adopt a comprehensive regulation of the crypto industry and most big players like Binance have welcomed this move.
Why is the regulation good?
Most importantly, there will be a higher level of investor protection and transparency. It also makes it easier for crypto companies to operate in a compliant way that is beneficial for society.
Whis it the regulation bad?
This regulation goes against the whole idea of Bitcoin/DeFi and reduces the utility of some tokens. After the implementation of this regulation, stablecoins will become much more similar to traditional currencies like the USD/EUR. People who use them will be subject to almost the same regulatory scrutiny as bank users (KYC, Anti-money laundering, etc.). Perhaps, the major remaining advantage will be the speed of execution of international transfers.
Moreover, crypto exchanges like Binance will become traditional centralized financial institutions similar to banks.
Are you enthusiastic about the new regulation or do you think that the members of the EU Parliament are useless idiots?